Nu earnings: Fintech company moves into crypto, insurance, and loans

Yahoo Finance Live anchors discuss Nu’s announcement to move beyond fintech and into crypto.

Video transcript

- And then Nu as well. NU ticker symbol there. Looking at the Brazilian fintech company with the company making moves into crypto insurance and even personal loans. They've also got some fresh earnings out.

So Nu moving up by about 16% here on the day. And I mean, for any company that's announcing that they're gonna be getting into crypto, get a little bit of fanfare that typically allows for a pop like this. And over the past five days, holding onto gains about 29% right now.

But on the operating highlights that the company provided, customer growth, 5.7 million. New customers in the quarter reached a total of 65.3 million.

BRIAN SOZZI: Yeah, two good items here. They added 5.7 million customers in the quarter. And their average revenue per active customer up 105%. Both of those are good metrics.

JULIE HYMAN: They're also doing a corporate reorganization of the leadership. So that seems to be what people are focusing on as well. Youssef Lahrech who is the firm's chief operating officer will be now in the role of president which didn't exist at the bank before. The CEO David Vélez, he'll report up to him. There's a chief growth officer now. So that I think has something to do perhaps with what's going on here.

There is a who's who of backers for this thing, right? Sequoia is the largest holder of Nubank, a 16% stake. Tencent owns 8%. Tiger Global owns 5.8%. And Berkshire owns 3% of this Brazilian company.

By the way, the IPO was in December. Another one from 2021. It was at $9.00 a share. So here's another one where we've seen it pretty much get cut in half from that IPO price. And it's down about almost 50% from that first day of trading, as you see there. Now, trading a little bit above $5.00, so.

BRAD SMITH: I mean, what a public debut draft class, if you will. Just absolutely getting hit. And in a hard time to enter into the public markets as well when you were catching the up and up in the equities. And then towards the end of the year, once November struck that's been--

BRIAN SOZZI: Look at Rivian.

BRAD SMITH: That's when the top price--

BRIAN SOZZI: Rivian's been a disaster.

BRAD SMITH: Yeah, absolutely.

BRIAN SOZZI: Terrible.

BRAD SMITH: So we'll continue to track Nu here. Shares on the day, though, still holding onto healthy gains.